Senior GM Accounts
27 Points
Joined July 2012
Query for TDS on Interest
A Company has taken over the liability of other Company in consideration of advance lease rental to operate the plant for next 30 years.
In this case Liability includes the Term Loan from Banks. From the Lease period, lessor company is required to pay the interest directly to the bank. Whether TDS is applicable.
Whenever lessor is paying off the liabilities took over, TDS is paid u/s 194I (being lease rental).